Is this the right time to incorporate RFID technologies into your business? What is the ROI?’
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Transcript of Is this the right time to incorporate RFID technologies into your business? What is the ROI?’
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Is this the right time to incorporate RFID technologies into your business?
What is the ROI?’
David MyersCEO AiDC Solutions LimitedChairman AIM UK
Prague – 30th March 2011
AiDC Solutions Limited www.aidc-solutions.co.uk
• Calculating ROI• RFID Diagnostic• Real-world examples
Agenda
AiDC Solutions Limited www.aidc-solutions.co.uk
Define the business process• Inputs, Activities, Outputs
• Define the Costs of the Activities• Time, People, Objects, Space
Technology Options
In Supply Chain we look at:• Receiving/Raw Materials• WIP• Shipping
‘There is no ROI with RFID’
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Consider what RFID DOES not what RFID IS
RFID is a technology which improves visibility
Closed Loop Supply ProcessASNs, Production Scheduling, WIP, inbound/outbound logistics, Resource Utilisation
Open Loop Supply ProcessWIP Flows, Inventories, Safety Stock, Storage
Value is the elimination of cost in the forms of time, unnecessary manual work, equipment, surplus inventories or space.
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Vehicle
Container
Pallet
Tote Bin
Case
Singles
Vehicle
Container
Pallet
Tote Bin
Case
Singles
Diagnostic Matrix
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Pallet Tagging
ReusableLow CostAutomatic Pallet ReadingLabour SavingsRead/Write
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Low Cost (Under 70 cents)RobustReusableAutomatic Tote ReadingLabour SavingGood Payback
Robust
Tote/Tray Tagging
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MetalFluid / High % Water Wood /Paper
Not reusableCost of the tag becoming very significantBuried Tags in pallet not readableMulti Tag reading
Product and Packaging Material
Case
Case Tagging
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Hadfields Stockport
• Rug & Carpet Supply• 200,000 Custom made
rugs• Barcode labels supplied
to manufacturers• Thousands of variants• Variety of manufacturers
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Hadfields Stockport
• Container Deliveries• 3,000 to 4,000 rugs
per delivery• 60 deliveries per year
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Hadfields Stockport
Incoming Stock;• Unloaded and checked
manually• Unload time 3 days for 7
men
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Hadfields Stockport
RFID enabled labels• Unloaded and placed into
container with known quantity of rugs
• Container wheeled past reading gate and RFID tags read
• Quantity verified• Information tied to stillage• Sent to store
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Hadfields Stockport
RFID advantage;• Unloading - reduced from
147 hours to 20 hours• Cost saving per year
£58,000 • Added Bonuses;• Stock accuracy• Despatch and tracing
accuracy
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• Poor Printing and label Positioning causes Read Errors
• Read Errors cause Downtime/ReworkErrors like this cost NGFE on average
£25,000 Per Year
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Saving
£18,500 Per Year
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Potential Saving
£50,000 Per Year
One Label – Means Less Bobbin Cleaning
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• Access Pass• Toll Roads• Transportation (Smartcard)• Tote box, Pallet & Load ID• Clothes tracking (M&S)• Libraries
RFID - it’s all around you!
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RFID Growth
Sales $ Millions
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Call
AiDC Solutions Limited+44 1422 399530
or visit
aidc-solutions.co.uk